PROPERTY:

Woodstream Terr, Lanham, MD 20706

LOAN OVERVIEW:

The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $83,000 and needs light updating (around $10,000 to update carpet, kitchen and bathroom, paint and landscaping). The Borrowers are putting up about $30K+ of their own cash plus fronting the 1st construction draw.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $75,000 1st Mortgage
Value of Subject Property: $ 150,000
Loan to Value: 50%
Term requested: 6 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score low


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with minimal construction needed.  The Borrower will be contributing about $30K+ into this deal.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.